(Kitco) Wall Street and Main Street both remain bullish in the weekly Kitco News gold survey, in essence considering this week’s pullback as a correction in a market that still is still in an uptrend.
Fifteen market professionals took part in the Wall Street survey. There were 11 votes, or 73%, calling for higher prices. There were two votes each, or 13%, for both lower and sideways.
Meanwhile, 467 respondents took part in an online Main Street poll. A total of 259 voters, or 55%, called for gold to rise. Another 129, or 28%, predicted gold would fall. The remaining 79 voters, or 17%, see a sideways market.
In the last survey, nearly two-thirds of Wall Street and Main Street was bullish on gold. As of a.m. EST, Comex April gold futures were trading 0.3% lower for the week so far to $1,318 an ounce.
“I remain bullish on gold for next week,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “A recent correction appears to have run its course with gold having successfully tested $1,305 support and the price starting to turn back upward again. With another U.S. government shutdown looming, Brexit talks going nowhere, U.S.-China trade talks having normal ups and downs, and earnings season continuing, there is a lot going on to keep the volatility pot boiling and defensive havens like gold still attractive to some investors.”
Kevin Grady, president of Phoenix Futures and Options, also looks for further price appreciation as long as gold holds above $1,305.
“We’re kind of in a step-up pattern technically,” said Daniel Pavilonis, senior commodities broker with RJO Futures. “I think stocks are still going to be weak, but I think the metals will be higher.”
Phil Flynn, senior market analyst with at Price Futures Group, also looks for the precious metal to trade higher, citing its ability to bounce late in the week even as the U.S. dollar remained strong. The continuing U.S.-China trade spat could prompt some safe-haven buying, he continued.
“Generally speaking, gold has been a forgotten asset for a while,” Flynn said. “It is starting to look better from a technical standpoint.”
Jim Wyckoff, senior technical analyst with Kitco, also said higher, commenting that the “trend is still up and the downside correction is likely near an end.”
Afshin Nabavi says the area around $1,302 is becoming a strong support and the market could move higher. “The concerns over U.S.-China trade dispute [and] eventual possibility of another government shutdown would make me think of a push towards $1,350ish area,” he said.
Meanwhile, independent technical analyst Darin Newsom is one of those who sees gold moving lower.
“I still see April gold moving into a secondary downtrend on its weekly chart,” Newsom said, citing bearish crossovers by weekly Stochastics above the overbought 80% mark.
“The U.S. dollar index moved to a new four-week high this week (barely so far), indicating more strength ahead, which should mean increased pressure on gold.”
Phillip Streible, senior market strategist with RJO Futures, looks for gold to be in a sideways pattern. “I wouldn’t be surprised that we have a new defined range between $1,306-$1,330."